Answered

Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Levelor Company's flexible budget shows $10,630 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2.10 per direct labor hour based on a budgeted operating level of 6,040 direct labor hours (90% of capacity). If overhead actually incurred was $11,095 during May, the controllable variance for the month was:

Sagot :

abiolataiwo2015

Answer:

$1,589 favorable

Explanation:

Calculation to determine what the controllable variance for the month was:

Using this formula

Overhead Controllable Variance =(Budgeted overhead per unit x standard number of units) - Actual overhead expense

Let plug in the formula

Controllable variance=(6,040*$2.10)-$11,095

Controllable variance=$12,684-$11,095

Controllable variance=$1,589 favorable

Therefore the controllable variance for the month was:$1,589 favorable

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.